"How To Grow Internationally: Best Practices for International Business." Internationalization Strategies and Assessment of International Business. In International Business, Internationalization Strategies and Assessment of International Business. Edgar W. Hoover, editor.
The challenges for U.S. companies in international markets are growing by the day. The trend is toward localization or even localisation. It is important for a company to have an awareness of its customers and how it is serving them, in other words, identifying its niche. A company should be fully aware of its competition in the same market and has to be able to differentiate itself in the market. The same holds true for the customers. A company should be able to differentiate its offerings from that of its competitors.
However, there is another aspect to the issue of how to grow internationally. What are globalization and what does it imply to companies? Globalization is the process by which national economies and societies in different nations and regions become unified, integrate economically, and participate in the international community. It is a process that has been happening for more than half a century. It came into being as a result of the end of the First World War and the onset of the Industrial Revolution.
The process continues to evolve with the passage of time. One such example of integration is the integration of U.S. and European companies. Apart from the direct effect of these two economic giants, the multinational expansion that these companies have embarked upon has led to the birth of hundreds of multinational organizations. This phenomenon is referred to as'globalization Readiness & Challenges'. The challenge is to adapt to the changes, both positive and negative, with the companies operating in different markets.
How to grow internationally? Companies need to be well-versed with all the policies, norms, procedures, terms and conditions related to internationalization. These must be reviewed periodically. Internationalization Readiness & Challenges can be defined as the preparation of strategies, programs, and systems to successfully cope with globalization. A company's internal capability in addition to external resources are essential for attaining global growth.
Companies should understand the need of their customers and focus on satisfying them. Their services must also be customer oriented. The success of any organization depends on its relationship with the customers. Many companies have realized the importance of globalization Readiness & Challenges in their everyday operations. For instance, Cisco Systems, one of the world's most prestigious IT companies has established over 30 manufacturing plants across the world. It is considered one of the world's largest manufacturers of computer networking hardware.
How to grow internationally? The need for businesses to gain an understanding of global markets, the dynamism of international markets, and how they work is vital. Companies should therefore consider implementing strategic planning processes for their businesses. Companies should not invest in projects that do not yield results. They should instead develop projects focusing on helping their customers globalize. This helps them build a foundation of relationships with the people across the globe and help them enjoy the benefits of globalization.
The need for companies to embrace globalization has emerged out of the realization that the world economy is in a state of continuous and profound change. Internationalization is the process by which companies across different industries and locations come together to pool their resources and learn to work as a team to make global impacts. The process of globalization is interrelated with other processes such as the globalization of information, the globalization of markets, and the globalization of technology. The importance of international business for companies cannot be ignored. Therefore, companies must take the necessary actions to meet the challenges of globalization.